Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares have been on form over the past 12 months.
During this time, the medical device company's shares have risen almost 30%.
This left them trading at $34.84 at Monday's close, which is just a fraction short of a record high.
Is it too late to invest? Let's see what Macquarie Group Ltd (ASX: MQG) is saying about the company.
According to a note out of the investment bank, the broker was impressed with the company's performance during FY 2025. Though, it concedes that its outlook was softer than it was expecting.
Commenting on its results, the broker said:
Hospital revenue was 2% ahead of our forecasts, driven by better-than-expected new apps revenue (+2% vs MRE, +18% CC YoY) and hardware sales (+5% vs MRE, +15% CC YoY). Management highlighted broad-based strength across the entire portfolio supported by ongoing change in clinical practice and a strong seasonal hospitalisation census. Management indicate top-end of guidance would achieve "a little bit above 12%" growth for hospital revenue, with seasonal respiratory hospitalisation rate and intensity driving demand variability (MRE ~9% CC).
Homecare revenue (+11% CC YoY) was largely in line with our forecast. Management highlighted strong contributions from new OSA masks including the Solo (launched in the US in Apr-24) and the Nova (launched in the US in Nov-24). However, CC growth declined from 14% in 1H25 to 9% in 2H25 due to competitor launches. Management expects FY26 growth to be similar to 2H25 (MRE ~8% CC).
And while it was disappointed with its guidance for FY 2026, Macquarie was pleased to see that management is guiding to better than expected margins over the medium term. It adds:
FY25 beat on top line and margin, with FY26 outlook a miss to consensus but largely in line with MRE. Despite an annualised tariff headwind of 75bps, FPH expect to achieve 65% gross margin target by FY28, ahead of our previous forecast.
The note reveals that Macquarie has retained its outperform rating on the company's shares with an improved price target of NZ$39.30. This implies potential upside of almost 13% for its NZ listed shares over the next 12 months.
Commenting on its outperform rating, the broker said:
We see the medium- to longer-term outlook as favourable, supported by uptake of new apps consumables (NHF, anaesthesia), OSA patient growth and increased utilisation from changing clinical practices.
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